AIS: Did you immediately jump into this?
Dahabshiil: Not yet, but there is more on the money-exchange front that you ought to know. When the initial money was sent from the Emirates to Djibouti, it was changed first into dollars, from there to Djibouti franc, and then to Ethiopian Birr. Every currency exchange will include a small commission or profit. I went back to Jigjiga and then to the village of Qaloan close to the border. While on this journey, I brought with me a reasonable load of “refugee rice.” Once I arrived in the village, I sent word to those who were on my list. Almost everyone came to see me. I gave everyone on the list the money that was sent to them by their relatives in the diaspora. With the remittance monies, some bought the rice I brought with me. What was most significant, however, was the fact each of those who received the monies that was sent to them responded with a strong note of appreciation for my promptness, honesty, and transparency. Later, I returned to Dire Dawa and from there took a plane to Dubai. Soon, more money, to be delivered to relatives in the Somali eastern Horn of Africa, was deposited with me. On my part, I was able to give the communities in the Emirates a thorough report on the general conditions and the devastating cost of war in the North. Moreover, I relayed the precarious and primitive circumstances of those who were living in refugee settlements or still wandering to find succor. All of that gave me a splendid profile as a competent and trustworthy individual, two characteristics essential for success in any legitimate business relations.
AIS: The beginning of this part of your business is utterly fascinating.
Dahabshiil: To be sure, it is a sort of an accident that turned into a vast project. In fact, the multiple discussions of this activity and its complex evolution through the years require its own separate interview and conversation.
AIS: That will be quite intriguing and illuminating. Perhaps we will plan another occasion to focus on this. For now, however, could you share the portion of your companies’ activities that is essentially constituted by money transfers?
Dahabshiil: My general estimate, at the current moment, it is about sixty percent of Dahabshiil enterprises. Moreover, much of the rest such as incipient banking is still connected to the money transfer component. To get back to the establishment of the money transfer project, it is worth remembering how cumbersome it was in the early years to establish and conduct the business. Among other difficulties was the ways messages were transmitted between families. Because there were no telecommunication networks available in villages and small towns, needy relatives would sometimes walk many miles to the nearest telephone to send or receive a message. Today, in dramatic contrast, camel herders in the Miyii are demanding a 3G or 4G mobile telephone to communicate with their far-flung relatives, as well as get informed about what is happening in their relevant world. Such is the magnitude of the technological transformations and the consequences for everyday life!
AIS: If it is your rough estimate that money transfer constitutes about sixty percent of your companies, how many people work in that component? In other words, what is the number of employees?
Dahabshiil: Roughly around one thousand individuals.
AIS: Tell me a bit more about the relationship between your Dahabshiil enterprises and individuals who have their own small stores with a window that processes individual remittances being sent. Are these franchises that are independent? Are they associated tightly with your company? What is the relationship?
Dahabshiil: In the beginning, these were individuals we recruited to collect the money. We proposed to them that they will get a commission out of our profit for each transaction. The assignment was basic: to collect the money being sent from the diaspora to our account in Dubai. Anyone who accepted our proposition was to immediately establish a locally legal storefront. The agreement was for the individual to find a lawyer to draw the appropriate framework, use the Dahabshiil brand name and become ready to work. We added that Dahabshiil would pay for the main cost of the preparation for opening the unit. This was how that started and continues to be the situation to this day.
AIS: Given the omnipresence of Dahabshiil money transfer offices, are there zones of the world where that is not the case?
Dahabshiil: Since our money transfers followed the patterns of Somali diasporic trails, there were hardly any clusters in the decomposing world of the USSR and Eastern Europe. In contrast, most of Western Europe and North America became rather quickly conducive socio-economic environments to Somali refugees and asylum seekers. Of course, much later, we will establish some business relationships with companies in countries such as India and Russia. In this context, we are not dealing with a Somali diaspora. Rather, we began to offer our facilitation in money transferring to, for example, Russians, Indians, or Philippinos, working in other parts of the world who wanted to send money home. We offer all an efficient and expeditious service that gives them confidence.
AIS: This is smart and impressive! Since this has become a lucrative business, I assume you have competitors. Who are they?
Dahabshiil: In the early days, every Somali who was able to garner a small sum of dollars tried to jump into the fray. As you know, competition has different levels. We always accepted the nature of the enterprise. Of course, there are major foreign establishments such as Western Union. These are buttressed by the world’s most powerful and dominant states. On the contrary, in our case, we have no strong state behind us. Consequently, we compete with the great sharks alone. Sometimes, Professor Samatar, this is a sobering and vulnerable context for us. There is no state to speak for us, to defend our legal rights, and to protect our wellbeing effectively. It is the heavy cost that has come with the demise of the Somali national state.
AIS: So soberingly true! How about your Somali competition in money transfers?
Dahabshiil: There are Amal company, Ahmed Jimaale’s Hormuud Company, Golis Company, and many smaller others. Salaama Bank is a product of the remittance business.
AIS: What about the newer and more internet-based ones such as WorldRemit headquartered in London?
Dahabshiil: This company is relatively new, perhaps in the past eight years. WorldRemit is not as prevalent in the overall Somali context. However, the company is a worthy addition to the competition. On this point, we have recently established an office in London that is moving more into the non-Somali world of money transfers.
AIS: Now, let us explore a bit more about what constitutes Dahabshiil Group of companies. How do you see developments in the future?
Dahabshiil: I have high confidence that the Dahabshiil Group will endure into the future. To start with, in addition to the continued blessings of Allah, there are my children. Some have long graduated from universities; others are in the midst of their necessary education.
AIS: I personally know your son, Abdirashid. He has impressed me as an astute, capable, and cosmopolitan person. Are there others of the same generation?
Dahabshiil: Yes, there is Said whose is about a year and a half younger. He lives in London. He is a tall young man.
AIS: Taller than Abdirashid (laughing), whose is already a bit towering?
Dahabshiil: Affirmative! He is working on the development of our system of money transfer beyond the Somali world. There are also younger ones who are still in universities and colleges. Furthermore, I have a cohort of daughters who have either graduated or are in the midst of that endeavor. In fact, some of the older daughters are working in some section of our business so that they can gain the necessary experience to thrive later in their lives. For instance, one of my daughters, whom you met here in Damal Hotel, requested that she become the general manager of the hotel. I have endorsed that idea and blessed her to go ahead.
AIS: I had a few brief encounters with her. She strikes me as a wakeful, industrious, and polite young woman.
Dahabshiil: I agree! She has already built another Damal Hotel in Berbera, and she is planning to convert a building I have in Garowe Town to become an addition to the cluster of Damal Hotels.
AIS: These are measures of promising successes. I know you are proud of these actions. I have stayed at both Damal Hotels in Hargeisa and Berbera. They are fabulous buildings that have added a lot to the quality of hospitality services in Somaliland. Of course, setting and keeping up high standards are the ultimate test of such ventures, right?
Dahabshiil: Yes, Professor Samatar, I agree with you completely about high standards of operation. Moreover, thank you for your patronship of Damal Hotels.
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